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TSMC scales back capital spending for 2015

TSMC scales back capital spending for 2015

Taipei, April 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC, ???) cut its annual capital expenditure target by NT$1 billion (US$32 million) Thursday as the world's largest contract chip manufacturer continues to improve its capital efficiency. The company's 2015 capital expenditure is expected to be between US$10.5 billion and US$11 billion, compared with a range of between US$11.5 billion and US$12 billion it set in January, TSMC Chief Financial Officer Lora Ho (???) told an investors' conference. However, the reduction in capital expenditure will not affect TSMC's overall capacity planned for 2015, as the company will convert part of its 20-nanometer capacity to more advanced chip-making technologies, she added. The announcement came just days after TSMC's chief adversary, Intel Corp., said it will cut its 2015 capital spending to US$8.7 billion from US$10 billion, a move that analysts said should improve free cash flow for the world's largest semiconductor maker. Also Thursday, TSMC forecast that its second-quarter revenue will decrease by 7-8 percent sequentially to between NT$204 billion and NT$207 billion, lower than market expectations of a 3-5 percent drop. Ho said the projected decline in the second-quarter revenue was due partly to inventory adjustments and a decline in the company's communication business. TSMC reported its second-highest quarterly net profit of NT$78.99 billion in the first quarter of 2015, as the manufacturer of chips for Apple iPhones rode on continued strong smartphone demand. (By Jeffrey Wu)


Updated : 2021-09-22 22:47 GMT+08:00